Sartorius Stedim Biotech S.A. Investor Relations
A Trusted Partner for the Biopharmaceutical Industry and Laboratories
Sartorius Stedim Biotech is a leading international partner for the biopharma sector. Our solutions are supporting our customers to develop and produce drugs safely, timely and economically. The Group has been annually growing by double digits on average and has been regularly expanding its portfolio by acquisitions of complementary technologies.
Seven reasons to invest
- Clear focus on the attractive biopharma sector
- Long-term growth drivers and significant market entrance barriers
- Market leading position in key technologies and recognized brand
- High share of recurring revenue as well as diversified earnings base
- Strong presence in growth regions
- Proven track record with alliances and acquisitions
- High continuity with respect to customer base, employees and management
Sartorius Stedim Biotech | Nine-Month 2020 Results
- Nine-month results: Sales revenue 1,379.4 million euros; underlying EBITDA margin climbs to 31.5 percent
- High growth across all product categories and geographies
- Management specifies financial guidance at the upper end of or slightly above the range indicated so far
Strategy and Targets for 2025
Sartorius Stedim Biotech’s goal is to continue its profitable growth and systematically expand its position as a leading international partner for biopharmaceutical research and the industry. We are pursuing various strategic initiatives to grow sustainably up to 2025 – and beyond.
- Achieve consolidated sales revenue of around 2.8 billion euros
- Increase underlying EBITDA margin1) to around 30%
1) Sartorius Stedim Biotech uses underlying EBITDA (earnings before interest, taxes, depreciation and amortization; adjusted for extraordinary items) as the key profitability indicator.
We focus in both divisions on the attractive biopharmaceutical market characterized by long‑term and stable growth trends.
Key Growth Drivers
- Growing world population
- Increasing incomes and better access to healthcare services in emerging economies
- Aging population and rise in age-related diseases in industrialized countries
Medical progress is also fueling growth, resulting in the ongoing development and approval of new biopharmaceuticals and in the improvement or expansion of indications for already existing active pharmaceutical ingredients. Therefore, a growing number of biotech medications are being approved for treatment of rare diseases considered incurable until now, and innovative cell and gene therapies are projected to further drive growth in the biopharma sector.
Sartorius Stedim Biotech has leading market positions in core technologies and is continuously expanding its portfolio by new, complementary technologies that help our biopharma customers develop and manufacture medications faster and more easily. Our strength in selecting suitable partners or acquisition candidates is based upon our in-depth understanding of applications. We are thoroughly familiar with our customers’ requirements and their entire value-added chains, and particularly understand the interactivity of the systems they use. Our innovation strategy is based on three pillars:
- Integration of innovations through acquisitions
- Alliances with partners
- Own product development
North America and selected countries in Asia are at the focus of our growth strategy.
North America is the world’s largest market for both the development and the manufacture of biopharmaceuticals. Because North America is home to the main competitors for both company divisions, Sartorius Stedim Biotech has historically lower market shares in this region than in Europe and Asia. Accordingly, the company is striving to gain market share, primarily by strengthening its sales and service capacities.
Our second regional focus is on Asia, especially on China, South Korea and India. These markets have tremendous growth potential due to their increased healthcare spending by private households and governments. In these regions, Sartorius Stedim Biotech has invested in its sales infrastructure and is planning to expand its production capacities.
Moreover, we are investing in the digitalization of our processes. In addition, we have substantially expanded our production capacities, above all for filter and bag products.
Outlook for 2020 specified
Based on its strong nine-month performance, Sartorius Stedim Biotech now expects consolidated sales revenue to increase at the upper end of, or slightly above, the range of 26 percent to 30 percent forecasted to date. As projected so far, the non-organic contribution to this growth by Biological Industries and the portfolio acquired from Danaher should amount to a good 3 percentage points and around 2 percentage points respectively. Driven by dynamic sales growth and somewhat lower costs, the Group’s underlying EBITDA margin1 is now forecasted to be around 32 percent (previously around 31 percent). The planned acquisition of purification specialist BIA Separations, which was announced in early October and is expected to close by late 2020, is not expected to have any material impact on Sartorius Stedim Biotech’s sales revenue or underlying EBITDA1 for the full year of 2020.
The ratio of capital expenditures (CAPEX) to sales revenue remains unchanged at around 8 percent (previous year: 9.4 percent). Due to strong cash flow, net debt to underlying EBITDA1 is likely to be slightly below 0.5 by year-end 2020, as projected so far, even after the acquisition of BIA Separations is completed in the fourth quarter (previous year: 0.3).
Due to the ongoing pandemic, this guidance continues to be subject to greater uncertainty than usual. In particular, these projections are based on the assumptions that logistics chains will continue to be stable and the relevant production lines will remain continuously in operation. All forecasts are based on constant currencies, as in the past years.
Mid-range forecasts are also subject to particularly high uncertainty at present. For the time being, Sartorius Stedim Biotech therefore has not changed its defined targets for 2025 of achieving sales revenue of around 2.8 billion euros and an underlying EBITDA1 margin of about 30 percent2. With the publication of the preliminary full-year 2020 figures, management will provide a forecast for the next financial year and explain its 2025 targets in detail.
1 Sartorius Stedim Biotech publishes alternative performance measures that are not defined by international accounting standards. These are determined with the aim of improving the comparability of business performance over time and within the industry.
- Underlying EBITDA: earnings before interest, taxes, depreciation and amortization and adjusted for extraordinary items; derivation shown on page 4.
- Order intake: all customer orders contractually concluded during the respective reporting period
- Underlying net profit: profit for the period after non-controlling interest; adjusted for extraordinary items and non-cash amortization, as well as based on a normalized financial result and tax rate; derivation shown on page 4.
- Underlying earnings per share: relevant net profit for the period divided by the number of shares outstanding (92,180,190)
- Ratio of net debt to underlying EBITDA (9M 2020): 164.6 million euros | 434.7 million euros = 0.3
- CAPEX ratio (9M 2020): investment payments in relation to sales revenue for the same period; 77.2 million euros / 1,379.4 million euros = 5.6 percent
2 Further information is provided on page 22 of the Sartorius Stedim Biotech 2019 Annual Report
Sartorius Stedim Biotech S.A. is the parent company of the Sartorius Stedim Biotech Group. It is headquartered in Aubagne, France, and listed on the Euronext Paris.
Approximately 74% of the share capital and around 85% of the voting rights of Sartorius Stedim Biotech S.A. are held by Sartorius AG. Sartorius AG is a leading international bioprocess and laboratory equipment and technology provider headquartered in Göttingen, Germany, and listed on the Frankfurt Stock Exchange. It operates two divisions: the bioprocess business as a subgroup under its parent corporation Sartorius Stedim Biotech S.A. and the laboratory business as a further subgroup.
Nine-Month Results January to September 2020
October 20, 2020
Half-Year 2020 Results
July 21, 2020
First-Quarter Results January to March 2020
April 21, 2020